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CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc.

Exterran Holdings, Inc. · Dec 11, 2014 · 38 slides

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Slides

  1. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 1
    CAPITAL ONE ENERGY CONFERENCE DECEMBER 11, 2014 Brad Childers Jon Biro President and Chief Executive Officer Senior Vice President and Chief Financial Officer Exterran Exterran Holdings, Inc. Holdings, All rights Inc. All…
  2. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 2
    COMPANY OVERVIEW Exterran Holdings (NYSE: EXH) Share Price1 32.36 Market Capitalization1,2 2.2 billion Average Trading Volume3 1,023,000 shares Dividend (annualized rate)4 0.60 / share Yield1,5 1.9% 1Asof December 8, 2014…
  3. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 3
    THIRD-QUARTER 2014 HIGHLIGHTS Organic horsepower growth of 56,000 Closed second acquisition with MidCon Compression in August 2014 for an additional 110,000 operating horsepower Solid operating results and bookings in our fabrication…
  4. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 4
    IMPROVED FINANCIAL PERFORMANCE Exterran Holdings EBITDA, as adjusted1 Exterran Partners EBITDA, as further adjusted2 700 634 631 300 259 600 250 239 19 500 25 461 434 200 181 388 ( millions) 400 ( millions) 25…
  5. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 5
    ENHANCED CREDIT PROFILE Total Debt Outstanding Exterran Holdings Debt to Adjusted EBITDA1 Improved capital position provides increased financial flexibility 1As defined in Exterran Holdings credit agreement Exterran Holdings,…
  6. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 6
    SEPARATION PLAN Exterran Holdings, Inc. All rights reserved. www.exterran.com 6
  7. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 7
    UNLOCKING VALUE: CREATING TWO INDEPENDENT COMPANIES RemainCo SpinCo Core Pure-play U.S. compression services International services & global fabrication Focus 1 1 2% GP and 35% LP interests & incentive Global fabrication…
  8. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 8
    STRATEGIC SEPARATION EXPECTED TO DELIVER SIGNIFICANT VALUE Opportunity to create immediate and long-term value for shareholders Creates two industry-leading energy infrastructure companies Enhances overall long-term growth…
  9. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 9
    SEPARATION SNAPSHOT RemainCo SpinCo Public Public Shareholders Shareholders SpinCo RemainCo 0.7 billion Debt2 U.S. Contract International International Public LP / GP U.S. Operations Contract Aftermarket Fabrication…
  10. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 10
    REMAINCO Exterran Holdings, Inc. All rights reserved. www.exterran.com 10
  11. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 11
    REMAINCO HIGHLIGHTS Growth Positive Industry Fundamentals Organic Growth at EXLP ThirdParty and DropDown Acquisition Opportunities at EXLP Continued Profitability Stability Improvement Structure FeeBased Contracts…
  12. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 12
    REMAINCO WILL BE A LEADER IN U.S. CONTRACT OPERATIONS SERVICES U.S. Outsourced Compression Competitors1 U.S. Natural Gas Production by Source2 (trillion cubic feet) RemainCos business size provides significant Optimistic…
  13. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 13
    REMAINCOS GEOGRAPHIC DIVERSITY Operating horsepower growth of 700,000 YTD 20141 Source: Energy Information Administration 1As of 9/30/14. Includes acquisitions of compression assets from MidCon Compression LLC closed April 10, 2014…
  14. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 14
    REMAINCOS STABLE REVENUES & CASH FLOWS Services Revenue and Oil & Gas Prices1,2 800 150% 700 100% 600 Revenue ( millions) Indexed to 12/31/08 500 50% 400 300 0% 200 -50% 100 0 -100% 2009 2010 2011 2012 2013…
  15. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 15
    REMAINCOS FAVORABLE PROFITABILITY TREND Gross Margin per Horsepower per Month1,2 12.00 10.60 10.42 10.30 9.82 10.00 9.58 9.92 9.84 10.00 9.10 8.87 8.78 8.43 8.37 8.45 7.91 8.00 6.00 4.00 2.00 0.00 Q1-11 Q2-11…
  16. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 16
    EXLP DISTRIBUTIONS Distributable Cash Flow Coverage1 Distributions Declared to EXH 1.80x 70 1.60x 1.60x 1.47x 59 60 1.40x 1.34x 1.31x 1.31x 1.28x 1.26x 1.20x 1.20x 1.22x 50 1.17x 50 1.20x 1.00x 40 ( millions) 34 43 31…
  17. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 17
    EXLP GP IS LEVERAGED TO GROWTH AT EXLP EXLP GP GROWTH IS 7.8x EXLP GROWTH (AT CURRENT EXLP LEVEL) EXLP GP Distribution Leveraged to Underlying LP EXLP GP Distribution Also Grows as EXLP Unit Count Grows Distribution Growth (Linear…
  18. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 18
    REMAINCO GROWTH STRATEGY Organic growth of 194,000 operating horsepower over the Organic horsepower growth past year1 Adding new large and small horsepower compression units to fleet Exterran Holdings strategy to drop-down…
  19. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 19
    SPINCO Exterran Holdings, Inc. All rights reserved. www.exterran.com 19
  20. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 20
    SPINCO HIGHLIGHTS Growth Global Energy Infrastructure Build Out Redevelopment in U.S. Energy Markets Target New Customers for Fabricated Compressors Stability Structure LongTerm FeeBased Low Debt Levels International Contract…
  21. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 21
    SPINCO BUSINESSES International Services Product Sales International contract operations Seven fabrication facilities in North provided with SpinCo-owned fleet America and four in international Leader in Latin America locations…
  22. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 22
    SPINCOS GLOBAL PRESENCE Revenue Mix1 Gross Margin Mix1,2 Kazakhstan Switzerland United States China Italy Eastern Hemisphere Pakistan 151k Operating HP3 Mexico UAE Thailand Colombia Nigeria Singapore Peru Gabon…
  23. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 23
    SPINCOS STABLE REVENUE & CASH FLOWS Services Revenue and Oil & Gas Prices1 600 150% 500 100% Revenue ( millions) 400 Indexed to 12/31/08 50% 300 0% 200 -50% 100 0 -100% 2009 2010 2011 2012 2013 LTM2014…
  24. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 24
    SPINCOS PRODUCT SALES TRENDS Fabrication Backlog and Revenue 1 By Region By Product Line 1,200 1,800 1,200 1,800 1,600 1,600 1,000 Revenue 1,000 Revenue 1,400 1,400 800 1,200 800 1,200 Revenue ( millions) Revenue…
  25. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 25
    SPINCOS GROWTH POTENTIAL: POSITIVE INDUSTRY FUNDAMENTALS Global Drilling and Production Capital Spending Projected to Increase 450 5.2% CAGR from 400 2014 through 2020 350 300 ( billions) 250 200 150 100 50 0…
  26. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 26
    SPINCO GROWTH PROFILE Attractive play on the build-out of global energy infrastructure Leader in contract operations in international markets Support customer owned equipment through international aftermarket services business…
  27. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 27
    SUMMARY Exterran Holdings, Inc. All rights reserved. www.exterran.com 27
  28. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 28
    PROCESS OUTLINE Initial board authorization has been received No shareholder approval required Next steps Determine detailed allocation of assets & liabilities Complete necessary regulatory filings, including SpinCo Form 10 Obtain…
  29. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 29
    RE-CAP OF STRATEGIC RATIONALE RemainCo SpinCo Pure-play yield investment leveraged to Focused company leveraged to growth in significant U.S. energy infrastructure global energy infrastructure build-out redevelopment and increased…
  30. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 30
    ADDENDUM Exterran Holdings, Inc. All rights reserved. www.exterran.com 30
  31. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 31
    CONSOLIDATED REMAINCO HISTORICAL PERFORMANCE Consolidated RemainCo Revenue Consolidated RemainCo Gross Margin1 ( in millions) ( in millions) 1,000 912 500 837 863 426 780 392 800 228 400 356 43 241 235 47 209 305 45 600 300 28…
  32. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 32
    SPINCO HISTORICAL PERFORMANCE SpinCo Revenue SpinCo Gross Margin1 ( in millions) ( in millions) 2,500 2,298 600 571 567 1,957 1,933 500 474 2,000 1,833 416 252 208 400 157 1,500 1,661 123 44 1,226 1,348 1,265 300 38 40 32…
  33. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 33
    PRO FORMA DEBT STRUCTURE Pro Forma Debt Structure as of September 30, 2014 ( millions) Existing Current Funded Funded Funded S&P/Moodys Pro Forma Pro Forma 6 Type Amount Size Maturity Rating RemainCo SpinCo 1 Senior Secured…
  34. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 34
    NON-GAAP FINANCIAL MEASURES Exterran Holdings, Inc.: EBITDA, as adjusted, a non-GAAP measure, is defined as net income (loss) excluding income (loss) from discontinued operations (net of tax), cumulative effect of accounting changes…
  35. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 35
    NON-GAAP FINANCIAL MEASURES EXTERRAN HOLDINGS, INC. 3Q-14 NET INCOME FROM CONTINUING OPERATIONS ATTRIBUTABLE TO EXTERRAN STOCKHOLDERS, EXCLUDING ITEMS 3Q-14 Net Income attributable to Exterran stockholders 34,050 Income from…
  36. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 36
    NON-GAAP FINANCIAL MEASURES (CONT.) EXTERRAN HOLDINGS, INC. (in thousands, except per HP amounts) 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 NACO Gross margin1 66,079 70,364 69,744 70,783 74,502 77,015…
  37. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 37
    NON-GAAP FINANCIAL MEASURES (CONT.) EXTERRAN PARTNERS, L.P. PRO FORMA EXLP Q1-14 DISTRIBUTABLE CASH FLOW COVERAGE1 ( thousands) Coverage Coverage with without Cost Caps Cost Caps Q114 distributable cash flow as reported 36,143…
  38. CAPITAL ONE ENERGY CONFERENCE – Exterran Holdings, Inc. – slide 38

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